Hundreds of jobs have been secured at Gatwick because the Government has extended its insurance scheme for Britain's troubled airlines.

The scheme, due to expire at the end of this month, will now run until September 30.

The move lifts the threat of airlines having to ground planes and lay off staff because they cannot get adequate cover.

The insurance measures were originally introduced in the wake of the September 11 atrocities in a bid to safeguard UK jobs.

Last year, insurers announced they would continue insuring aircraft, passengers and crew but limit their liability for damage caused on the ground to £34 million.

But, in an arrangement with the London insurance market, the Government has been providing further free indemnity.